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Mad Money

News/Business. (2012)




San Francisco, CA, USA

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America 8, Google 6, Cramer 5, Washington 4, New York 4, Pogue 4, Nokia 4, Us 3, Amazon 3, Lsi 3, Apple 3, Barbara 3, Caterpillar 3, Sandy 2, Texas 2, Heaven 2, Georgia 2, New Jersey 2, Indiana 2, Orlando 2,
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  CNBC    Mad Money    News/Business.  (2012)  

    November 29, 2012
    11:00 - 12:00am EST  

i'm jim cramer. welcome to my world. >> you need to get in the game. >> firms are going to go out of business and he's nuts, they're nuts. they know nothing. >> i always like to say there's a bull market somewhere. "mad money" you can't afford to miss it. hey, i'm cramer. welcome to "mad money," welcome to cramerica. my job is not just to entertain you, but educate you. call me at 1-800-743-cnbc. we interrupt this broadcast to bring you actual news.
with the averages hanging in there. dow, nasdaq climbing, you couldn't help but see some stocks are actually at last transcending the gravitational pull of washington, apple, google and amazon. just today gaining at the close of the market. look, i'm as aggravated as you are about the lack of progress over the fiscal cliff. is there progress? is there no progress? are the democrats giving? have the democrats given? the only thing given that i know is the tablet. that's what i want to spend a moment on while we bemoan the farce that is washington. one of the worst aspects of this era where we have to hang on every word of people who frankly aren't actually trying to make us any money, and if anything want to take it from us, is there are companies doing amazing things, so tonight in
the interests of some companies that are doing great things that can make you money, i want to celebrate the products of three terrific companies as well as their stocks, because after all this is "mad money," not mad tablets. first one of my favorites is the column that amazes me, david pope, the "new york times" writer who opines brilliantly in a can't-miss column about tech products. i love this guy. today's product starts well enough, a segment of an npr-call-in segment that he was going to offered opinions, but to quote, all six callers had the same question -- which tablet should i get? it was a terrific jumping-off point. however, for me, this question was the perfect jumping-off point not to figure out what's the best tablet, but to try to predict the future of technology stocks in general and the three standout players -- amazon,
google and apple in particular. let's start with a personal computer. pogue was all set to talk about which ones were the best. while it's only anecdotal, nobody wants a pc? that means, we got to stay away from hewlett-packard and dell. can't bottom-fish there. there was a time when we actually wanted to weigh in on which computer was the best. now they're just plain irrelevant. that means the stocks are irrelevant, too, sell, sell, sell. second we don't want what's inside the personal computer. i think that intel is having such a weak quarter it may have to preannounce a shortfall. microsoft, ouch, windows 8, maybe not so hot. but you would have thought there would be one call about the surface. allegedly red-hot tablet from
mister softy, with all -- i better -- i can't turn on a football game without reading about it, seeing it. no, what's on the radar screen? worrisome. even worse, again for microsoft, no one asked about game consoles. i'm used to writing off sony and nintendo, the also-rans, but if there's no console question, again anecdotally, we can't expect xbox to be the secret sauce, either. pogue talks about ereaders as well as tablets, with considerable praise about the nook. just to show you how a column like this is simply no more than a jumping off point, barnes and noble tells you the nook doesn't drive things. a four-cent loss, and despite what looks like outstanding nook sales, we're dealing with a company that had $1.88 billion sales, and didn't produce much of return. there was plenty of progress in terms of cash flow, but in the end the stock sold off badly.
no nookie for the nook, as long it's buried within barnes and noble, which brings me to the three musketeers of tech. that's what i'm calling it from now on. google, amazon and apple. now, all three, like barnes & noble, can't be judged by the tablet products, but we can and must make broader judgements about these companies. pogie makes the point they all offer superior products. he says that point-blank, to me that says, well, hold it, this isn't about private labels offering superior value to branded products. no, it's the opposite. second, these companies are relentless innovators, all trying to one-up each other. everywhere, the more i dig, the more i realize this competition isn't zero sum. all three could be winners in their own way. amazon is a champ. not because of the kindle, but because it's offering superior
value on everything it sells. i believe it's the only real retail winner in a terrible month of november. we saw those numbers today. when the stores are closed in the wealthy portions of the northeast, that brings more samplers to amazon. google, the last quarter was such a stinker, kind of count this company out these days, don't we? after the incredible decline, but that's in part because the company's core business of advertising is being crimped by the move to mobility. google seems to be stumbling into that transition, one i think that facebook has mastered, but google is a player where it has to be in tablets and phones. whenever we write this one off, it innovates and gets right back in the game the way microsoft and intel used to. it's all missouri, show me, but nevertheless when i read about their products, they may very well show us, which brings me to apple. [ mooing ] >> the amazing thing about apple, pogue admits that apple does have some incredibly serious competition for the ipad, but the competition
happens to be the ipad mini. he doesn't come out and say it. the real takeaway is while google is coming after apple hard with the nexus, the game still belongs to apple, why? because the tablet-designed apps that make the apple ecosystem. all that lives within that ecosystem -- winners. amazon, which is a super retailer with a slick razor to run the razor blades, apple is truly a tablet and smartphone driven company with a solid pc and ipod business, too. the fact that pogue makes the tablet out to be the de facto gift, when wall street seems to be disappointed with the ipad as well as sales for the iphone 5, tells me that the rally in apple that started a dozen days ago may have more steam. the bottom line -- sometimes you don't want to overthink things.
in an ungamable fiscal cliff negotiation, it pays to keep an eye on the main chance. it may well be the three musketeers of tech. and the best stock. barbara in texas, barbara. >> caller: hi, jim, this is barbara. i'm interested in knowing, i got in liquidity services today at $37.04. it's gone down lower, and how would you -- i put a stop in around a little lower, but --. >> yeah, boy, you know, this is a difficult marketplace. ebay all the way up here is better. i think you're in the non-best of breed. logan in texas. >> caller: thank you for taking my call. >> my pleasure. >> caller: my question is there's been a lot of talk about the possibility of a copper shortage. >> i read that. very interesting.
>> caller: yeah. i was wondering, how does that affect a stock like caterpillar? >> they don't relate. if you're talking about the raw costs of caterpillar, that's largely steel. steel is in glut, and the fact is if there's a copper shortage because there's so much business, cat will be benefiting. i think that's the case. the stock acted very well today in the face of negative comments. elizabeth in florida? >> caller: hey, cramer. i own iaci. >> sure, i know it. >> you know one of major holdings is in october the stock took a huge hit as a result of a patent infringement lawsuit. okay, this is of caveat. it's a possibility of future lawsuts. however, the fundamentals
remain intact. is it a match made in heaven or a bad date? >> it's a good date. it's profitable. i thought it was terrific. i am a buyer of interactive corp. as we wait for washington to rise above, remember to keep your eye on the main prize -- the chance it's apple, it's amazon, it's google. for me, apple, it's still the real standout. "mad money" will be right back. coming up -- power up? >> the devastation left in the wake of sandy is a stark reminder of just how vulnerable our critical infrastructure is. as this crucial backbone is rethought and rebuilt, cramer looks at one stock that seems to be in a powerful position. could it recharge your portfolio? and later -- >> house of pleasure.
>> pending home sales rose to a five-year high today. which stock should you move into, as the foundation for growth and housing becomes more secure? tonight, it's an open house for three potential plays on a real estate rebound. which one should you put an offer out on? plus best medicine? health care trust of america leases over 12 million square feet of medical space nationwide. could their hefty dividend help your portfolio stay healthy? cramer gives his prognosis in an exclusive with its ceo just ahead. all coming up on "mad money."
now that we've had a month
to reflect on hurricane sandy, one thing is very clear. our nation needs a new power grid. you know that and i know that. i call this storm a wake-up call to government officials and the utilities they regulate all over this country to finally start fixing our aging infrastructure. it's not just that the storm knocked out power in the northeast. one of the reasons why it took days or even weeks for people in new york or new jersey to get electricity back is because our grid is outdated. did you know that 30% of our infrastructure is already approaching the end of its usefulness?. another 30% is approaching the end of its usefulness. this equipment should have been replaced ages ago. one of the reasons why you're disgusted in the northeast about what happened, and you have right to be. after sandy i think we'll finally start tackling this issue and start taking it seriously. one of the reasons is our lousy electrical grid is also a security threat.
heaven forbid a terrorist wanted to do some damage. all they would have to do is knock out a couple power substations, which are generally only protected by chain-link fence. one substation knocked out all of lower manhattan. take a look at this clip. doesn't that look like something out of a science fiction movie where aliens are invading? escape from new york part 2. anybody who has seen that footage knows we need to upgrade this grid. that's where quanta services comes in. it's a leading specialty contractor that designs, installs, upgrades, repairs and maintains electric power networks, both for transmission and for distribution. if you were driving on any interstate before sandy, you probably saw caravans of quanta trucks -- what is that company? it's the who you gonna call outfit when the big one is coming.
plus quanta builds oil and natural gas pipelines. in short, it's a post-sandy play with a pipeline kicker. no wonder the stock at $25 is only a pont and a half off its 52-week high. because our grid is in such dire repairs, spending on the networks is on the rise, with an estimated 2 to 3 times average historical levels action and we can say for many years to come. this was ready before sandy was hit. it's fabulous for quanta. post-sandy we're seeing a big drive to restore distribution. thanks to these trends they're looking at solid growth for the next three to five years. because so much of the grid is made up of equipment past its shelf life, companies need to
spend a lot more money to keep operating at the same level. the same thing is going on also in canada. their electrical grid is just as outdated as ours, that's why quanta has made acquisitions. canadian utilities estimate $100 billion on new transmission distribution infrastructure. potential a really big business for this company, so it's riding a great bull market in building on the new electrical power infrastructure, something that accounts for about two thirds of the company sales. also a play on the pipeline bull market. i've talked about the pipeline operators so many times. kinder morgan, enterprise, all of these, you know, the within -- mark west, that big secondary. these are the guys spending billions upon billions to lay new pipe to service all the recent discoveries in north
america, the bakken shale, the eagle ford, the canadian tar sands. it's not the companies that build the lines, but quanta. they have a complete turnkey infrastructure division. last week the company as it was selling the business to daikon, but i like that, it's a pure play on the two areas that have the most business. the power business, which we know after sandy is well, you have to put money in and the pipeline business where the money is being pumped in. quanta has been on a real roll. most recently when they reported in the aftermath of sandy, they posted a spectacular 11 cent earnings beat off a 37 cent basis. revenues rising 34.7%, and they gave upside guidance for the next quarter. it's the triple play. because this is an infrastructure builder, we care about their backlog. the book of business -- their new bookings.
the 12-month backlog rose to a new record. the bookings increased by 17% for the previous quarter. think about it like this. quanta is a $5 billion company that has more than $4 billion of business over the next year. doesn't that sound like the kind of stock you want to own? i think it's a terrific long-term story, firing on all cylinders. even though the stock is up 20% for the year, it's still pretty darn cheap. and the stock is ten bucks below where it was four years ago before the great recession took hold and when there wasn't nearly as much business as there is now. i'll bet it could get a substantial higher price to earnings multiple. the tragedy of hurricane sandy was a revelation. our country needs to upgrade its power grid and we've got to do it now. in this one area, it seems like
our state governments and our utilities are actually on the case, which is why you want to own quanta services, power, pwr, the company that builds out new infrastructure and has a killer pipeline business. what's not to like? after the break, i'll try to make you more money. coming up -- >> house of pleasure. pending home sales rose to a five-year high today, but which stock should you moved into as the foundation for growth and housing becomes more secure. tonight it's an open house for three potential plays on a real estate rebound. which one should you put an offer out on? [ male announcer ] this december, remember --
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so they can inspire our students. let's solve this. no doubt about it. housing is coming back with a vengeance. today we learned that pending home sales increased by 5.2% from september to october. that's a five-year high. every piece of housing of data has been positive or incredibly positive. the rebound has arrived. you know the housing stocks i have recommended, more on those later in the show. i'm always trying to find some less exploited ways to play the housing resurgence.
i want to look at the three derivative plays that have come public recently. we're talking about zilla, trulia and realogy. it's where potential renters and buyers go to find out all things real estate related. realogy involved -- it's supposed to been a fragmented business, but they have a huge share. which of these recent ipos is the best way to play the
rebound? all three stocks when they came public had very first rate stocks, but trulia and zillow spiked higher. zillow went public at $20, and rose 78.9%. trulia came public in september, pricing 17, popping 41% on the first day of trading, just like zillow, the stock has pulled back to less than a dollar above its ipo price. realogy priced at $27. rising 26.7%. since then, realogy has kept on rallying. it's just a couple dollars off its high. i wish it were lower, i really do. i think this is a case where the
action is quite telling. there's a reason it's done so much better in the aftermarket. it's because it has the most sustainable growth trajectory. that's exactly what this stock market wants. they're relying on online advertising rates that are variable. lately they're not necessarily in a good way. the thing that differentiates them from any other place is they also sell leads to real estate agents. right now this is a three-man game with zillo, trulia and realogy, but it's very low barriers to entry. there's nothing from stopping anyone getting in on the action. and once they have finished monetizing the user base, growth is slow, maybe slowing dramatically. based on their recent results, we may already be reaching that negative inflection point where people get tired of checking
the value of their home, stuff like that. when zillow reported on september 5th, it was good, but that isn't as important as the guidance going forward, and the guidance was just plain disappointing, which caused the stock to get poleaxed. it it was already beginning to decelerate dramatically. now zillow grew revenues last week, but for 2012 it's only expected to grow at a 72% growth, and the latest was just 67%. i know those are high on an absolute basis, but the street regarded it as a major deceleration. that's what makes investors want to hit the road. the company beat the estimates when reported november 7th, but it was a low quality beat, which is why the stock plummeted. all the strength came from the
media business, while the market-place side came in below the projects. the subscriber growth decelerated. we know from google's last quarter, the advertising business has gotten hard. they're walking on a tightrope. zillow trades at 48 times next year's earnings. trulia trades at a rather astounding 103 times next year's numbers. they need to deliver stellar results. but realogy is different. it's a substantial old-line company with a management that has decades of experience. it benefits directly from the rebound in housing, and more importantly, volume the transactions is increasing rapidly. in a market these days, frankly i want to go with the old hands and tried and true. realogy owns seven franchises thousands of more brokers.
the business model here isn't complicated. when one of realogy's realtors sells a home, the company gets a commission based on the sales price of the home. so now that we're seeing both more transactions and higher housing prices, it has two great ways to make more money. it's pricey, selling 29 times next year's earnings and 15% long-term growth rate. so we're going to be careful here. i think the growth, though, can be revised higher as the housing rebound continues. that said, i'm going to wait on a pullback to the low 30s. i would buy it slowly and gradually. remember, if we do go over the fiscal cliff that will take the whole market down, so you put this on a shopping list, because that could give you a terrific entry point. i think the housing cycle is so darn strong, it can trump the ills of the fiscal cliff, at least once it's sorted out. ultimately the cliff will be sorted out.
of the three housing-related ipos, you need to be careful with zillow and trulia, the only one i will endorse is realogy, and only if it comes down to a level where it's cheap. how about michael in california, please? michael. >> caller: boo-yah to you, jim. with a solid dividend that pays monthly at almost a 16% yield, its current valuation a dollar beneath book value, isn't a.r.r. a great value? >> you know what? i have thought it was. this is another one of those real estate mortgage reits that i have somewhat been mystified about the price performance. someone asked about this on the street, and i said i think it should be doing better. i agree, i think it's an okay buy. john in oregon, please. >> caller: boo-yah, jimmy, how are you? >> boo-yah back at you.
>> caller: residential home builders, i bought in about six or eight months ago, i have about four of them right now. it seems like the market's flattened out as far as they're concerned. should i hang onto them or ring the bell? i was talking with stephanie link, the research director, a frequent contributor to "fast money." we both felt the same way, this is a pullback, a pullback in time. i want you holding on to them. i think they'll have a very good 2013. i would rather consolidate, mutual fund housing, but the group, the sector is a good one, and the h.e.x. is an etf that's also good. just so we know, that one is coming back very strongly yesterday. chad in florida, please. >> caller: hey, jim, a boo-yah from orlando. >> man, i wish i were in orlando. i wish it was warm. what's up? >> caller: i have a question on
north star realty finance. it looks like this got upgraded today. could it be a way to play a comeback in commercial real estate? >> we look at this one, this is a very, very good company. they're a real estate debt company. here's what i want to do. i want it on the show. that's how we'll make our best adjustment. you're invited to come on "mad money." whether you're house hunting or profit-hunting, i think realogy is the best, but it's pricey. still too high. let it come in, but don't hesitate to pull the trigger. it's best in show. don't move. lightning round is coming up next. it's a brutal full-contact sport.
bp has paid over twenty-threebp billion dollarsnt to the gulf. to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger.
it is time. it's time for the lightning round. buy buy buy or sell sell sell. hey, staffers prepare the graphics on the fly. play this sound and then the lightning round is over. i want to start with brian in ohio. brian? >> caller: hey, jim, out of cleveland here, i have a question for you on mark west here. i bought it around $51. i watched it go up, back down, do i dump it or -- >> no, no, you're fine. they priced that secondary. you know how important it is to get that natural gas. it goes higher. hold on to it. larry in indiana. >> hey, a great big boo-yah from indiana.
>> we went out to kelly's school. it was fantastic. >> caller: bank of america, what do you think? >> my favorite is wells fargo. i'm not a big fan of bank of america, but it will go up, but i'm going to say if you own it, that's fine. chuck in new jersey. >> caller: hi, jim. i saw your interview with mr. heckman. will there be an upside for the stock when they finally merge? >> a great question. remember, it's levered to natural gas drilling and oil drilling. the problem is, if you think of the rig count every week, it is down, it is doing poorly, because people are shedding natural gas drilling. you have to hold it for a long time. too many people are hot money, this is not hot money, it's a long-term speculation, but it is spec because of the balance sheet.
mike in new mexico? >> caller: hi, jim. how are you? from the land of enchantment in albuquerque. >> love it. >> caller: jim, i'd like to know about lsi. >> i think lsi is breaking good, not breaking bad. i think the company is doing quite well. however, it is technology, which is a disliked sector. lsi is doing well, though. let's go to roy in new jersey. my home state. roy? >> caller: thanks for taking my call. do you agree with the deutsche bank analyst who recommend exelon at 30? >> i think the guy was saying how much lower can it go? i think exelon, that's how i interpret their statements. i would rather be in a company duke, controversial saying things about the ceo, but i
think exelon has not treated the shareholders right. michael in georgia, please. >> caller: hi, jim. i was wonders about nokia. >> here's why they're buying nokia, because research in motion is going up. if that dog doesn't have as much fleas, maybe nokia is flea-less. here's my problem it can go to four, five, i need a fundamental reason to own a stock, and i don't have it with nokia. dan in wisconsin? >> caller: my stock is dupont. >> it was a terrific question by my old friend whether too hard on dupont or ellen coleman. i'm going to tell you it's a very weak hold, no better than that. let's go to steve in new york. steve? >> caller: boo-yah, jim. >> boo-yah, steve. >> caller: thanks for taking my
call. i enjoy watching your show. >> thank you. my question is despite the looming fiscal cliff, how do you feel about buying and holding a high-dividend stock such as pitney-bowes? >> i'm worried. it has a 12%, 13% yield. that's a classic red flag. that makes me concerned. i'm using the old herb greenberg tactics and saying, wait a second, it's just too darn high. i'm going to say don't buy. that, ladies and gentlemen, is the conclusion of "the lightning round." the lightning round is sponsored by td ameritrade. coming up, best medicine. healthcare trust of america leases medical space nationwide providing for stable income. could their hefty dividend help your portfolio stay healthy?
an exclusive with the ceo just ahead. scuba diving the great barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.
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with the fiscal cliff approaching, people worry about having to pay a higher tax rate, i get that, but when you can snag high-quality stocks that yield more than 5%, i'm all ears. that's one of the reasons i want to tell you about health care trust of america, a newly minted real estate trust that owns medical office buildings. hga is a very defensive stock. unlike retail reits, it's levered to a sector, health care, that just does fine when the economy goes in recession. look, it's a real possibility if we go off the cliff. plus we have a limited supply of medical office space. this is a nice, steady business. let's take a closer look with
scott peters. mr. peters, welcome to "mad money." >> thank you for having me. >> i try all the time to find companies that might be beneficiaries of the affordable health care act. i stumbled on you guys. you're the one? >> we think we are. we've been fortunate. health care systems are now running like businesses. with 30 to 40 million more insured coming up, they need the most affordable location to off those services. those are mobs, they're on campus, and jim, i think over the next 10, 20 years there will be core critical real estate. >> i look at a lot of reits. most of them are in crowded fields. the hotels divvied up, a lot of retail space. this is a $250 billion sector. you seem like you're just
scratching the surface. >> $250 billion is the estimated value. they're going to monetize some of these assets. it's a great opportunity for us to be selective, to be disciplined, buy great assets, long-term value with great yields for our investors. >> just go over for our retail investors, most of our audience. when you say monetize, who is monetizing, why are they doing it? why are you the beneficiary? >> health care systems, going back to the affordable care act, 30 to 40 million more folks will be insured, will have to have services. the aging population, we all know the demographics, you get older, live longer, that will put the health care systems, we're beginning to see this in a position of saying how do i best utilize my cash? in an asset?
historically they've had cheaper access to debt and so forth, with in new affordable care act, you're seeing health care systems say, look, it's better if i monetize, take that cash, put it into physicians, put it in for the infrastructure. one of the reasons we like on-campus mobs is because they put tremendous amounts of dollars into the infrastructure of their hospitals. >> walk us through what you had in mind when you started the company. is it the idea every year you grow a bit? >> well, you know, we have a very strong balance sheet. one of the things we wanted to do when we came public over the last six years was maintain low leverage. 30% leverage to enterprise value. we're investment-grade company. 57% of our tenants that are credit rated, 40% that are investment grade. we want to focus on three things. we want to take the 91%
occupancy and move it to 94. >> and you think that's a possibility? >> i do. over the next 24, 36 months. remember the affordable care act doesn't start until 2014 really. second, we want to make sure that when we acquire assets, we do it very carefully. big field, $250 billion, lots of time to do that, and so we'll go through same-store growth, 2 1/2, 3 1/2%, acquisitions where it makes sense. use our balance sheet appropriately, and i think we have a great opportunity for investors over the next 3, 5, 7 years. >> construction, is there a lot of new construction, or is it basically limited to where they could flood the place, the country with office buildings. >> go back to the location. for health care systems, they need to be located near a hospital. so core critical real estate are on these campuses. in high-density areas, there is not a lot of space to be able to build on, so i think that the development is a ways away before we see any significant
amounts. >> last question, i appreciate your wearing our button rise above. fiscal cliff and your company, something we need to worry about? less than other companies? >> we're in a great asset class. it's defensive. we've talked about some of the benefits. we as a company have a great balance sheet. we're seeing our leasing better in the last six months than in the last three years. i think you've heard that, stabilization of rates, so i think from our particular business standpoint, we would love to see the fiscal cliff solved, we would love to see fundamentals come back to sense, but our business, the affordable care act, i don't see that as a big impact at all. >> simple, good clean story with good distribution, nice yield. scott peters, chairman and president of health care trust of america. they are not involved with the
craziness of washington other than maybe they can profit from it. [ male announcer ] this december, remember -- ♪ you can stay in and like something... ♪ [ car alarm deactivates ] ♪ ...or you can get out there with your family and actually like something. ♪
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deposit checks from your smartphone with chase quickdeposit. just snap a picture, hit send and done. take a step forward and chase what matters. are we underestimating sandy, are we just plain wrong about how much rebuilding needs to be done? this morning we got a recognition from bill dudley,
president of the new york federal reserve, that sandy might be the big one. i think he's right. the numbers we have seen sound like overestimates, you know? i think they're going to be dramatically understating the destruction. there are whole swaths of sandy's wake that haven't begun to be measured. the only measurement is today when we saw the shortfall in retail sales from the chains hurt by the hurricanes. maybe only amazon was able to capitalize. i think repairing the damage may cost -- materials that will be used to rebuild are simply not usable. the victims of warehouses that straddle the ports of new york and new jersey, warehouses which were basically washed away by the storm doesn't get written about enough. there's been many an article lamenting the lack of insurance
and many people are struggling to put the pieces back together, particularly in the hard-hit rockaways, staten island, parts of new jersey, but there's other high-income areas, where, insurance or not, the rebuilding will start in earnest when the supplies are replenished, something that may not occur until the second quarter. i believe it will provide a level of business that could shock people. i'm talking about very basic companies like georgia gulf for pipe, usg for gypsum board, louisiana-pacific and weyerhaeuser for board and wood, lumber highest prices since 2006 this morning. owens corning and berkshire hathaway. i expect it would extend, even appliances and paints, again old favorites, whirlpool and sherwin-williams. this one is so big it could move the needle for caterpillar, definitely united rentals.
we'll hear numbers being bumped you will for all these companies as they furiously try to get the inventory where it's needed. just hiring contractors, a newfound labor shortage and wipeout, it will be difficult, but this event will provide multiple quarters of growth, and growth you must invest in during every dip during the next four to eight weeks. it's ironic the housing and construction business was just beginning to come back on its own. witness this morning's strong pending home sales number, but sandy damage, you get sharply better than expected quarters for companies that have serial disappointers, a major change, one that will become the story for the first half of 2013. stick with cramer.
some kind of stunning news. we got a bad number from yum. why? because kentucky fried chicken, one of the brands, is a big seller in china. it looks like china is decelerated. we've got to do some work tonight on that and come back tomorrow. this has long been one of the best stocks that we have talked about. all right. we've got great news to report tonight. our fabulous executive producer regina had a baby girl today. we want to wel